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European indices plunge
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DE30 tries to climb back above 15,000 pts
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Allianz buys majority stake in Greek insurance company
European stock markets are plunging on Monday as tensions around Ukraine escalate. DE30 dropped below 15,000 pts with all 40 members trading lower on the day. US intelligence claims that Russia may invade Ukraine as soon as this week. While the economic calendar for today is empty, geopolitics are likely to keep the markets moving.
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appDE30 is taking a hit today and making another attempt of breaking below the key 15,070 pts support zone. German index dropped to 14,830 pts at the start of today's cash session but has managed to bounce off the daily lows and recover back above the 14,900 pts handle. Today's daily close may be key for technical outlook for the next few days. A daily close below the aforementioned 15,070 pts support could hint that more weakness is coming. In such a scenario, lower limit of the large Overbalance structure at 14,180 pts should be treated as a key support.
Company News
Concerns over potential Ukraine-Russia conflict are pressure stock markets at the beginning of a new week. All 40 DAX members trade lower compared to Friday's closing prices. Symrise, which is the best performing DAX member today, trades 1.1% lower at press time while Continental, which is the worst performing DAX members, trades 4.6% lower.
Allianz (ALV.DE) launched a €207 million buyout of a Greek insurance company, European Reliance. Allianz offers €7.80 per share of European Reliance - a 16% premium over pre-announcement price. Allianz entered into an agreement to purchase 72% stake in the company and have launched a takeover for the remaining stake.
Bayer (BAYN.DE) said that technical issues at one of its suppliers are limiting its production of glyphosate. Bayer said that it is working to source required materials elsewhere. Glyphosate is used in Bayer's Roundup weedkiller, that is at the centre of multi-billion dollar lawsuits.
Christian Scherer, Chief Commercial Office of Airbus (AIR.DE), said that company expects more A350 freighter orders even as Boeing launched 777X cargo planes - a direct competitor to A350s. Airbus also doesn't expect potential sanctions on Russia to limit availability of titanium for the aviation industry.
Allianz (ALV.DE) is trading almost 4% lower today. In spite of positive M&A news, stock is taking a hit on war concerns. Share price is currently testing a support zone in the €220 area. Breaking below would pave the way for a test of the next short-term support in the €215 area. Source: xStation5
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